personal debt tips

Expert personal debt tips to guide you with your money.

3 Common Debt Solutions

If you have had a consultation regarding your debt, you now have a options for solving your debt dilemma. First, you can consolidate, which does not eliminate your debt, but it should make it easier for you to reduce your debt and finally pay it off. Second, you can liquidate assets. You can, for example, sell an expensive car and buy something more economical. Third, you can consider declaring bankruptcy. Bankruptcy should be your last option because it will continue to affect your credit for seven years. No matter what you choose, there is a debt solution that will help you.

Debt Help Resources are for Everyone

Many people wait until they are overwhelmed by debt before they seek debt solutions. The best way to maintain your credit score is to seek debt consultation before your creditors are beating down your door. If you're wondering how to find help with the debt you have, try your creditors first. Depending on your income and credit score, many credit card companies are willing to negotiate a lower interest rate. If you have numerous student loans, call FAFSA or Fannie Mae and gett your options for a student loan consolidation. You may reduce the number of payments you're making to separate lenders, and you'll often get a better interest rate. Also, if you are having trouble with your mortgage or your home equity loan, contact your mortgage company. Investigate refinancing solutions. To ask for help is taking the first steps towards getting control of you debt.

How to Find Debt Solutions

Financial planners and debt analysts get paid to do what they do because of their knowledge and experience. Use their recommendations to understand your alternatives and make smart decisions. Consulting a professional debt consultant will most probably result in several options you haven't discovered in your own research and even some debt solutions that you hadn't considered at all. If you are overwhelmed about your financial situation and you're ready to seek debt help, call a professional and listen with your head, not your tense stomach.

Your Debt Solution – Patience and Time

Educate yourself on all your options before you do anything drastic, like filing for bankruptcy. Talk to a few debt consultants and financial advisors to get an idea of all your options. Do online research and check the library for self help financial books. Get your own credit report and score so you know what you need to do to improve your financial situation. When you are prepared with as much knowledge as you can get, then make a decision. It is possible that bankruptcy is the best option for you, but make sure you know all the pros and cons before you make the decision.

Let Debt Consolidation Help You Avoid the Wrong Decision

Debt consolidation can help you avoid bankruptcy and it's a much more responsible decision to make. With bankruptcy your creditors don't ever get the money they are owed and you or your business will have a credit mark that will follow you for years. If you consolidate your debt by taking on one new loan, you ease the burden of phone calls and bills to pay and you are left with only one payment. It is your debt and your responsibility. While it may seem easier to give up and declare bankruptcy, you are further ahead with debt consolidation and you can start repairing your credit right away.

Costs & Benefits of Debt Consolidation

Some debt solutions or debt consolidation plans come with fees. Now, if you are paying 1% and you are saving 10% the savings are obvious. Calculate the costs and accurately figure out what you are spending vs. what you are getting back. Often, individual debt consultation is not fee based as they create a debt solution for you. Business debt consultation often does have a fee structure. If you've researched your options, you won't be surprised by the possibilities laid out by your debt consultant and you'll be able to make an educated decision about your plan of action.

Can Debt Actually Help a Company?

Oddly, debt can actually help some individuals and professionals. When a person is afraid of losing their company, their home or their job, you'll often work harder to increase their revenue and resolve the debt. Debt can help you focus your energies on being more efficient, streamlined and work within a budget. For instance, a debt consultant may ask -- are you putting enough revenue into your real assets like your home or your employees? Debt pressures can force us to look reality squarely in the face. Don't be afraid of it - use it as an opportunity to grow your business or your personal finances.

A Last Resort Debt Solution - Bankruptcy

With recent new laws, bankruptcy is less attractive than ever as a debt solution. It is now harder to be eligible for bankruptcy, and it still takes seven years to get it off your credit. It can keep you from getting a car loan, a mortgage or even a credit card. Don't rush into bankruptcy without seriously considering all of your options. And don't depend on the attorney or bankruptcy specialist with whom you are working to suggest alternatives. They support themselves with these proceedings, so they have very little motivation to help you find alternative debt solutions. Here’s a great tip -- find a financial planner or analyst you trust and let them help you identify all of your options. This will help you make a better decision.

Online Debt Consolidation Help Preparation

When you find the right debt consolidation lender or service, you'll need to prepare some documentation to get your loan processed. First, get your credit report. Make sure it's accurate and any accounts that have been paid off or closed are accurately reflected on the report. Next, gather all of your current bills. Know the balances, phone numbers and addresses of all your creditors. Next, gather your current interest rate information your average payment. Give all of this information to your professional debt consultant; they'll have what they need to find the right consolidation loan for you.